By Salma El-Sakka
UK Chancellor John Healey delivered his first Budget on Wednesday, announcing a £100 payment to 20 million households for energy bills and tax breaks for high street businesses, funded by higher taxes on banks and gambling firms. He warned of a global economic storm driven by the Iran war.
Energy Bill Support Package
Around 20 million households in council tax bands A to D will receive a £100 payment this winter to help with soaring energy bills, at a cost of £2.6 billion to the Treasury.
Tax Increases on Banks and Gambling Firms
To fund the support measures, Healey announced a 3% surcharge on bank profits for 15 months starting in January, and increased gambling taxes. The Chancellor said he was looking to banks to help fund breathing space for British families.
Business Rates Relief for High Street
The gambling tax rise will finance business rates relief that removes 70,000 firms from paying rates altogether, meaning half of shops, restaurants and gyms will pay no business rates.
Economic Forecasts Revised Amid Global Storm
The Office for Budget Responsibility identified the war in the Middle East as the key driver behind a downgraded growth outlook. GDP growth for 2027 was cut to 1.0% from a previous 1.6%, while the 2026 forecast was raised slightly to 1.2%. The OBR projects growth of 1.6% in 2028, 1.8% in 2029, 1.7% in 2030 and 1.6% in 2031. Healey also noted that debt interest costs have risen by £14 billion this year.
